National Bank of Canada announced strong financial results for its fiscal fourth quarter, driven by impressive performances across its main segments.
For the period ended Oct. 31, the Canadian bank recorded net income of 768 million Canadian dollars ($566.4 million), equivalent to C$2.14 per share, representing an increase from the previous year’s net income of C$738 million, or C$2.08 per share.
Adjusted earnings reached C$2.44 per share, surpassing analysts’ expectations of C$2.26 per share, according to FactSet.
Total revenue rose to C$2.59 billion from C$2.33 billion, slightly below analysts’ forecast of C$2.64 billion.
The National Bank of Canada saw a significant increase in revenue in its personal and commercial segment, which grew by 8% mainly due to growth in loans and deposits. Its wealth management segment also experienced a 4% year-over-year increase in revenue, while the financial markets business witnessed a significant rise of 31%.
Provisions for credit losses, which are reserves set aside by the bank to cover bad or uncollected debt, rose to C$115 million from C$87 million in the previous year.
The common equity tier 1 ratio, a measure of a bank’s core capital compared to its riskier assets such as loans and mortgages, stood at 13.5% compared to 12.7% a year earlier.
These positive results reflect National Bank of Canada’s strong performance and resilience in the face of challenging market conditions.
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